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Mr Luis, a credit analyst for Lotex Inc. is considering a 10,000 bdt order from a new customer. The customer wants to avail credit terms,
Mr Luis, a credit analyst for Lotex Inc. is considering a 10,000 bdt order from a new customer. The customer wants to avail credit terms, and Lotex has a 45 -day credit term. The cost of capital for Lotex is 9% annually. The variable cost is 70 paisa per taka of sales and the credit administration and collection expense is 4 paisa per taka of sales. Based on the information, should Mr. Luis approve the credit sales
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